Good afternoon team,
I am currently with bad wifi so it will be difficult to update the technical analysis charts this week, I will do my best to keep you all up to date.
The US stock market faced a large decline overnight with tech stocks leading the tumble. Apple and Amazon were among the biggest detractors, down 2.6% and 3.1%, respectively. The Dow Jones briefly traded above 35,000 points but ended up falling 0.1% despite the energy sector spiking after a key US pipeline was shut down due to a cyberattack. The S&P 500 also fell 1.0%. With the decline seen in the US market, we are expecting the ASX to follow suit after reaching a major technical double top. Interestingly, the USDCAD is also approaching a major double bottom, which suggests USD strength could come into the market over the coming days (risk off).
AUS200/ASX Daily Charts
Rising wedge structure, bearish divergence and a major double top. These all suggest a bearish reversal opportunity.
ASX 1 Hour Charts
Trade Setup: SELL Market Execution, current price on Focus Markets 7076, stop loss 7176 and take profit targets 6900-6600.
Stop loss: 100 pips
Take profit: 176-476
Keep in mind pricing might vary depending on the brokerage.